ISLAMABAD: Finance Minister Ishaq Dar Tuesday said the country’s central bank, State Bank of Pakistan (SBP) has received $2bn from Saudi Arabia.
The development follows the $3bn Stand-by Agreement with the International Monetary Fund (IMF). The inflow has increased the forex reserves held by the central bank and will accordingly be reflected in the country’s forex reserves for the week ending this July 14, according to Dar.
State Bank of Pakistan (SBP) has received deposit of $2 billion from the Kingdom of Saudi Arabia. This inflow has increased the forex reserves held by SBP and will accordingly be reflected in the forex reserves for the week ending 14July2023.
— Ishaq Dar (@MIshaqDar50) July 11, 2023
“On behalf of the prime minister and the army chief, I extend our heartfelt thanks to the leadership of the Kingdom of Saudi Arabia for their great gesture and support by placing the said deposit of $2bn with the State Bank of Pakistan,” the minister said.
PM Sharif also expressed his gratitude to Saudi Arabia and Crown Prince Mohammad Bin Salman for ensuring financial support to the country.
On behalf of the people of Pakistan, I would like to extend my deep gratitude to the leadership and brotherly people of the Kingdom of Saudi Arabia for the US$2 billion deposit with the State Bank of Pakistan. I would like to especially thank my brother Saudi Crown Prince & Prime…
— Shehbaz Sharif (@CMShehbaz) July 11, 2023
Dar hoped that the deposit will strengthen Pakistan’s foreign exchange reserves. He also appreciated Dar and Chief of Army Staff General Asim Munir for their efforts in this regard.
Saudi Arabia had already pledged the money to Pakistan and waited for the much-awaited IMF deal before depositing it.
The executive board of the IMF will meet on July 12 to review the $3bn Stand-by Arrangement for Pakistan, the staff-level pact for which was finalised last week.
On June 29, Pakistan and the IMF reached a stand-by arrangement to ease the country’s financial crisis. The nine-month SBA, if approved, will bring another $3bn, or 111pc of Pakistan’s IMF quota.
